Tissue and Hygiene

Send Email

Tissue and Hygiene in the Philippines

May 2015|Pages: 59

Price: US$2,650

About this Report

EXECUTIVE SUMMARY

Tissue and hygiene posts positive current value growth in 2014

Tissue and hygiene witnessed slightly stronger current value growth in 2014, compared with 2013. The rise in prices of raw materials like cotton and paper saw manufacturers pass on added costs to consumers, which led to unit price increases across tissue and hygiene categories. Improved disposable incomes and generally positive economic conditions also raised consumers’ willingness to buy premium tissue and hygiene products, be it for high product quality, comfort or convenience. On the other hand, the rising maturity of some categories, such as cotton wool/buds/pads and toilet paper restricted the overall growth potential of tissue and hygiene in 2014.

Convenience tissue and hygiene products gain ground

Positive economic conditions in the Philippines lowered the unemployment rate in 2014, thereby boosting consumer confidence. The demand for convenience was increasingly pronounced during 2014, as hectic lifestyles forced consumers to juggle their time between work and taking care of the home. Therefore, consumers increasingly sought tissue and hygiene products that can ease their daily lifestyles. For example, disposable pants that aid toilet training and ultra-thin towels with wings that are comfortable to wear yet offer high leakage protection.

Competition intensifies in tissue and hygiene

Procter & Gamble Philippines Inc retained the leading position in tissue and hygiene through its established brands: Pampers in nappies/diapers/pants and Whisper in sanitary protection. However, the competition in tissue and hygiene intensified between international and domestic players in 2014. While domestic players attracted consumers via competitive prices and product quality, improved disposable incomes and sophistication saw many consumers shift to international brands. The perception is that international brands offer higher product quality, albeit at higher prices than domestic brands.

Grocery retailers lead tissue and hygiene distribution

Supermarkets remained the leading distribution channel for tissue and hygiene in 2014, owing to comprehensive brand and product portfolios. Strong bargaining power over suppliers also allowed supermarkets to offer attractive and regular promotions that attracted consumers. Independent small grocers provided another strong channel, due to a wide distribution network, rural penetration and long-standing relationships with consumers.

Tissue and hygiene is set to see slower growth in the forecast period

Tissue and hygiene is expected to see positive retail volume and value growth over the forecast period. However, the increasing maturity of tissue and hygiene, given the essential nature of various categories and already high penetration rate in the Philippines, is likely to slow the pace of growth over the forecast period. The expected improvement in economic conditions is likely to sustain consumer confidence and spending, especially on premium tissue and hygiene products. This is due to the perception that premium tissue and hygiene products offer higher quality and greater convenience.